Houston Launches The PACE Program To Spur Sustainable Development
It’s gotten easier to go green in Houston. The City of Houston now participates in the PACE (Property Assessed Clean Energy) program, which offers a new way for property owners to finance energy-efficient improvements. Owners can get a PACE loan to finance 100% of water or energy conservation enhancements. They’re paid back over a period of up to 20 years via an annual payment billed with property taxes. Even with increased property tax payments, borrowers are likely to come out ahead financially because of savings on energy and/or water bills. As an additional benefit, PACE loans are attached to properties rather than to owners. If you sell your property before repaying your loan in full, the balance due will be the responsibility of the new owners. (So if you’re buying property, be sure to ask whether the prior owner had a PACE loan.)
Property owners aren’t the only ones who will benefit from PACE. By supporting enhancements like bike racks and charging stations for electric cars, PACE will play an important role in reducing local greenhouse gas emissions. By providing funding for projects like landscaping with native plants or collecting rainwater for irrigation, PACE will also enhance Houston’s ability to withstand drought. And ideally, PACE will stimulate Houston’s economy by creating jobs in the renewable energy and water conservation sectors.
This map shows the areas that fall under the Houston PACE program. PACE programs are active in 31 states plus DC, and their benefits can be seen all over the country. After getting a PACE loan, the owners of the Constance Hotel in Pasadena, CA, reduced water consumption by 3.2 million gallons a year. The owners of a Los Angeles Hilton anticipate saving $800k in the first year since upgrading their property with the help of a PACE loan. And the owners of the Missouri Athletic Club, a landmark, nonprofit property in St. Louis, saved $200k in the year after their PACE-funded, energy-efficient enhancements.
